AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question Hi there, I have a S corp and only employee. sometimes i have dinner expenses
with business prospects. according to IRS, these expenses are 50% deductible.
i always pay with my business credit card. when it comes to pay my credit card,
what should i do? pay the entire amount with my business checking or pay the
portion that is deductible and the other half with my personal checks? if i pay
the full amount with my business checks, then how does this work at the end of
the year when i fill out taxes if only 50% is deductible and pay the full amount
with my business checking account?
Answer If you charge $50 in meals to your S-Corp, at tax time, only $25 is deductible, so it does not matter if you pay half personally or thru the business.
It is just the law the way it is written, only 50% of meals and entertainment is deductible.
